part d ←Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. Theyearly demand for these connectors is 14,100 units. Southeastern estimates its annual holding cost for this item to be$22 per unit. The cost to place and process an order from the supplier is $73. The company operates 300 days per year,and the lead time to receive an order from the supplier is 3 working days.a) What is the economic order quantity? 306 units (round your response to the nearest whole number).b) What are the annual holding costs? $ 3365 (round your response to the nearest whole number).c) What are the annual ordering costs? $3364 (round your response to the nearest whole number).d) What is the reorder point? units (round your response to the nearest whole number).

Given Annual demand = 14100 Working days per year = 300 Lead time = 3

Answered: a) What is the economic order quantity?…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section10.4: Simulation With Built-in Excel Tools

Problem 14P

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